BUSINESSMAN Dave King has held talks with key Rangers shareholder Sandy Easdale over the future of the Ibrox club.
The pair are understood to have had an "amicable telephone conversation" yesterday, but sources said "there remain many unanswered questions" to resolve.
The Scots-born millionaire, 59, is expected to issue a statement on his proposed investment today, before returning home to South Africa. He is believed to be seeking to invest £16 million to eventually take control of the club, which could return to top-tier football next season. The offer is being made jointly by Mr King in conjunction with at least two other businessmen.
It would require the backing of 75 per cent of the club's shareholders for the release of new shares in the company.
Mr Easdale will be influential as, though not a member of the plc board, he holds the voting rights to just over 26 per cent of the shares in Rangers. This gives him the power to veto any fresh release of equity at the club's next annual general meeting.
Any deal would require agreement from at least all six of the major Rangers investors. Besides Mr Easdale, these include Laxey Partners, Sport Direct boss and Newcastle United owner Mike Ashley, and investment managers Artemis, River and Mercantile & Miton.
The latest negotiations come after Mr King held talks with Rangers board members last week.
It is understood that Mr King is open to a deal which could potentially appease shareholders concerned their investments will be significantly diluted if fresh shares are released by the company. This could see him put up a secured loan to the League One club, which is said to be struggling to meet its November payroll, in exchange for control over the club's plc board and shares from any fresh issue.
A decision is required before the end of this month to avert a financial crisis.
There have been suggestions Mr Ashley may step in with an alterative if Mr King's offer is rejected.
Mr King was convicted in South Africa last year on 41 counts of contravening the Income Tax Act, which would likely result in the Scottish FA having to rule whether he is a fit and proper person to be in charge.
Changes to the governing body's rules last year extended their jurisdiction beyond individuals named as office bearers.
A club must inform the SFA of any possible conflict with its fit-and-proper-person guidelines if an individual is to take control of its affairs.
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